Fidelity Charitable: Arm Or Affiliate Of Fidelity Investments?

Fidelity Charitable is an independent public charity that helps donors maximise their charitable contributions through a donor-advised fund (DAF) called the Giving Account. The DAF is a charitable investment account that allows donors to contribute cash, stocks, mutual funds, and other assets, and receive immediate tax deductions. Fidelity Investments, a financial services company, provides services to Fidelity Charitable and the two share similar branding.

Fidelity Charitable is an independent 501(c)(3) public charity

Fidelity Charitable is the sponsor of the largest DAF program in the country. The Giving Account streamlines the process of strategic giving for a broad range of donors, allowing them to contribute many types of assets and plan their giving more systematically. It is a flexible, tax-efficient way to give to your favourite charities.

When you contribute to the Giving Account, you are eligible for an immediate tax deduction. Your contribution is then invested based on your preferences, allowing it to grow tax-free while you decide which charities to support. You can then advise Fidelity Charitable on granting the money to your chosen charities.

Fidelity Charitable accepts a wide range of financial assets, from cash and checks to stocks and even non-publicly traded assets like private business interests and cryptocurrency. There is no minimum to open a Giving Account and you can support as many charities as you like. The minimum grant amount is $50.

Fidelity Charitable is the brand name for Fidelity Investments® Charitable Gift Fund, an independent public charity with a donor-advised fund program. Various Fidelity companies provide services to Fidelity Charitable.

Fidelity Charitable's donor-advised fund is called the Giving Account

Fidelity Charitable is an independent 501(c)(3) public charity that helps individual and corporate donors maximize their generosity through a donor-advised fund, called the Giving Account. Established in 1991, Fidelity Charitable is the nation's top grantmaker, distributing $11.8 billion to charities in 2023.

The Giving Account is a charitable investment account that allows donors to give to the causes they care about while maximizing their tax benefits. It is a donor-advised fund, meaning that donors can recommend grants to their favourite charities at any time. There is no minimum amount required to open a Giving Account, and donors can support as many charities as they like with a minimum grant amount of $50. Donors can contribute cash, stocks, mutual funds, and more to qualify for a tax deduction and potentially reduce capital gains. Contributions are invested based on the donor's preferences, allowing for the potential to unlock more tax-free dollars.

The Giving Account streamlines the process of strategic giving, allowing donors to contribute many types of assets, including cash, checks, stocks, and even non-publicly traded assets like private business interests and cryptocurrency. Donors can also use a "bunching" approach to exceed the standard deduction, frontloading multiple years of charitable giving in one year to surpass the itemization threshold and then taking the standard deduction in the following years. This strategy can be particularly impactful for donors experiencing a high-income year or preparing for retirement.

Fidelity Charitable offers one of the lowest annual fees for donor-advised funds, with a 0.60% or $100 annual administrative fee (whichever is greater) and investment fees ranging from 0.015% to 0.91%. Donors can also incorporate Fidelity Charitable into their estate planning, reducing or eliminating the estate tax burden for their loved ones.

Fidelity Charitable sponsors the largest donor-advised fund program in the US

Fidelity Charitable is an independent public charity that helps donors maximise their charitable giving through a donor-advised fund (DAF) called the Giving Account. DAFs are like charitable investment accounts that allow donors to support charitable organisations they care about. Fidelity Charitable is the sponsor of the largest DAF program in the US.

The Giving Account streamlines the process of strategic giving for a broad range of donors, allowing them to contribute many types of assets and plan their giving more systematically. It is a tax-smart way to give, allowing donors to contribute cash, stocks, mutual funds, and more to qualify for a tax deduction and potentially reduce capital gains. Donors can also invest their charitable balance based on their preferences, potentially unlocking more tax-free dollars.

Fidelity Charitable's DAF has no minimum initial contribution requirement and one of the lowest annual fees of any DAF. Total fees for a Giving Account typically amount to about 1% of the balance, which is generally less than the fees associated with a private foundation or donating with a credit card.

Donors who use the Giving Account can recommend grants to multiple charities per year and increase their philanthropy options. They can also recommend grants to charities on the go through Fidelity Charitable's mobile app.

In 2023, Fidelity Charitable made a record-breaking number of donor-recommended grants, distributing $11.8 billion to nearly 199,000 charitable organisations in every state and around the globe.

Fidelity Charitable donors can recommend grants to charities

Fidelity Charitable is an independent 501(c)(3) public charity that helps individual and corporate donors maximize their generosity through a donor-advised fund, called the Giving Account. Donors can contribute cash, stocks, mutual funds, and more to qualify for a tax deduction and potentially reduce capital gains.

The donor-advised fund is called the Giving Account. It is like a charitable investment account that allows donors to give more to the causes they care about while maximizing their tax benefits. It is a streamlined account that allows donors to contribute cash, securities, or other assets to a donor-advised fund sponsoring public charity. Donors are then generally eligible to claim an immediate tax deduction. These funds can be invested for tax-free growth, while donors can support charities on their own timetable.

Fidelity Charitable's donor-advised fund is the nation's largest, with over 30 years of expertise. Donors have access to free resources and tools to help them make a greater impact. The fund is also one of the easiest and most tax-advantageous ways to give to charity.

Fidelity Charitable's Giving Account has no minimum to open and no ongoing balance is required. There is a $50 minimum grant, and donors can support as many charities as they like. The annual administrative fee is 0.60% or $100, whichever is greater. Investment fees range from 0.015% to 0.91%. It is often cheaper than giving with a credit card.

Donors can recommend grants to IRS-qualified public charities. They can use multiple channels (online, phone, mobile app) to access their Giving Account and recommend grants. The grant recommendation process involves providing details such as the charity they wish to support and the grant amount, confirming how they would like their grant recommendation to be funded, and submitting their recommendation to Fidelity Charitable. Fidelity Charitable will then send the approved funds via check or EFT.

Overall, Fidelity Charitable's donor-advised fund provides a simplified, tax-smart way for donors to give to their favorite charities while maximizing their tax benefits.

Fidelity Charitable donors can claim an immediate tax deduction when contributing to the fund

Fidelity Charitable is an independent 501(c)(3) public charity that helps individual and corporate donors maximise their charitable giving through a donor-advised fund, called the Giving Account. Fidelity Charitable is part of Fidelity Investments, and donors to the fund can claim an immediate tax deduction when contributing.

The Giving Account is a charitable investment account that allows donors to give to the causes they care about while maximising their tax benefits. Donors can contribute cash, stocks, mutual funds, and more, and are then eligible to claim an immediate tax deduction. This means that when you contribute cash, securities, or other assets to a donor-advised fund, you can generally claim a tax deduction straight away. This is because donations to Fidelity Charitable are treated as donations to any public charity for tax purposes.

Donors can take the same tax deductions as when donating to any public charity. For example, if you donate cash or cheques, you are generally eligible for an income tax deduction of up to 60% of your adjusted gross income (AGI). If you donate long-term appreciated assets, such as stocks or bonds, you can increase your deduction. By donating these types of assets directly to charity, you generally won't have to pay capital gains tax, and you can take an income tax deduction of up to 30% of your AGI.

Donors can also combine more than one type of asset to maximise their tax deduction. For example, you could donate cash and long-term appreciated assets to increase your total deduction.

It is important to note that charitable deductions are only available at the federal level if you itemise deductions. Rules and regulations regarding tax deductions for charitable giving vary at the state level, and donors should always consult an attorney or tax professional for specific advice.

Frequently asked questions